As December 2024 approaches, South Africans are bracing for the latest fuel price adjustments. These changes, announced by the Central Energy Fund (CEF), will bring mixed news—slight relief for petrol users but a pinch for those reliant on diesel and illuminating paraffin. Here’s what you need to know about these adjustments, the factors behind them, and how they impact your finances.
December 2024 Fuel Price Forecast
The table below outlines the projected changes in fuel prices for December 2024:
| Fuel Type | Expected Change |
|---|---|
| Petrol 93 Octane | Decrease of 16 cents |
| Petrol 95 Octane | Decrease of 4 cents |
| Diesel 0.05% Sulfur | Increase of 39 cents |
| Diesel 0.005% Sulfur | Increase of 38 cents |
| Illuminating Paraffin | Increase of 39 cents |
Petrol users, especially those filling up with 93 octane, can expect modest savings at the pump. However, diesel users and industries reliant on illuminating paraffin face higher costs, with increases ranging from 38 to 39 cents per litre.
Factors Behind Fuel Price Changes
Understanding the reasons behind these price adjustments requires looking at two key factors:
Global Oil Prices
The price of crude oil heavily influences local fuel costs. As of mid-November, Brent crude oil is trading at $71.44 per barrel. This price is shaped by global supply-demand dynamics, geopolitical tensions, and production decisions by major oil-exporting nations.
Rand/Dollar Exchange Rate
Since South Africa imports most of its crude oil, the rand/dollar exchange rate plays a critical role. A weaker rand means higher import costs for crude oil and refined products. Currently, the rand is trading at R18.09 per US dollar, which has added pressure to local fuel prices.
Comparing November and December 2024 Fuel Prices
To see how these changes stack up, here’s a comparison of November and December prices in both inland and coastal regions:
Inland Prices
| Fuel Type | November Price (R/litre) | December Price (R/litre) | Change (R/litre) |
|---|---|---|---|
| Petrol 93 Octane | 20.98 | 20.82 | -0.16 |
| Petrol 95 Octane | 21.30 | 21.26 | -0.04 |
| Diesel 0.05% Sulfur | 18.66 | 19.05 | +0.39 |
| Diesel 0.005% Sulfur | 18.77 | 19.15 | +0.38 |
| Illuminating Paraffin | 12.87 | 13.26 | +0.39 |
Coastal Prices
| Fuel Type | November Price (R/litre) | December Price (R/litre) | Change (R/litre) |
|---|---|---|---|
| Petrol 93 Octane | 20.19 | 20.03 | -0.16 |
| Petrol 95 Octane | 20.51 | 20.47 | -0.04 |
| Diesel 0.05% Sulfur | 17.87 | 18.26 | +0.39 |
| Diesel 0.005% Sulfur | 18.01 | 18.39 | +0.38 |
| Illuminating Paraffin | 11.87 | 12.26 | +0.39 |
Implications for Your Pocket
Petrol Users
Motorists relying on petrol will enjoy a minor reduction in prices, easing some financial strain. Although the savings might seem small, they can add up over time, especially for high-mileage drivers.
Diesel Users
The increase in diesel prices, however, spells trouble for logistics, agriculture, and transport sectors, where diesel is a primary fuel. Expect this to trickle down to higher goods and service costs.
Households Using Paraffin
The 39-cent rise in illuminating paraffin prices will strain low-income households that rely on it for cooking or heating.
What You Can Do
While you can’t control global oil prices or exchange rates, you can take steps to mitigate the impact of rising fuel costs:
- Plan Trips Efficiently: Combine errands to minimize unnecessary driving.
- Use Public Transport: Whenever possible, opt for buses, taxis, or trains.
- Track Prices: Stay updated on fuel price movements to plan your refuels.
- Cut Energy Costs: Explore alternative heating and cooking methods if paraffin prices strain your budget.
The fuel price adjustments for December 2024 highlight the dual challenges of global oil volatility and a fluctuating rand. While petrol users may find temporary relief, diesel and paraffin consumers need to brace for higher costs. By staying informed and planning ahead, South Africans can better manage these financial shifts in their daily lives.
